Scenario: Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below. 1 Aug Started business with $150, 000 in the bank 28 Aug The owner took $5000 out of the bank for his personal use. 28 Aug Provided services for cash 12 small motorbike engines $350.00 per engine 6 medium size motorbike engines $550.00 per engine 4 medium size motor bike engines $800.00 per engine 29 Aug Bought supplies on credit from big J Manufacturers 4 Bottles Fuel Injector Cleaner $200.00 per bottle 9 Boxes Air Filters $720.00 per box 8 Boxes Sparks Plugs $300.00 per box 30 Aug Provided service for cash 8 small motorbike engines $350.00 per engine 7 Large motorbike engines $950.00 per engine 8 Medium motorbike engines $550.00 per engine 31 Aug Supplies on hand 5 Boxes Air Filter $720.00 per box 6 Bottles fuel injector cleaner $200.00 per bottle 12 Boxes Spark Plug $300.00 per box 13 Boxes Brake Shoe $580.00 per box 9 Boxes Disc Pads $400.oo per box To avoid duplication of account names and the use of improper account names, the company has provided the following list of accounts used to record its transactions as extracted from its chart of accounts: Capital Cash Supplies J Manufacturers Service Revenue Discount Allowed Rent Expense Wages Expense Supplies Expense Fixtures Auto Care Loan NBC Discount Received Electricity Expense Drawings Requirements: Create a name for the owner of the company and give the business a name that reflects the operations of the organization. Record the transactions stated above in the general journal. Post the transactions to the general ledger and balance off each account Extract a trial balance on August 31st. Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date
Scenario:
Assume that a relatively new company you and you group members are involved with has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and books as outlined in the requirements below.
1 Aug Started business with $150, 000 in the bank
28 Aug The owner took $5000 out of the bank for his personal use.
28 Aug Provided services for cash
12 small motorbike engines $350.00 per engine
6 medium size motorbike engines $550.00 per engine
4 medium size motor bike engines $800.00 per engine
29 Aug Bought supplies on credit from big J Manufacturers
4 Bottles Fuel Injector Cleaner $200.00 per bottle
9 Boxes Air Filters $720.00 per box
8 Boxes Sparks Plugs $300.00 per box
30 Aug Provided service for cash
8 small motorbike engines $350.00 per engine
7 Large motorbike engines $950.00 per engine
8 Medium motorbike engines $550.00 per engine
31 Aug Supplies on hand
5 Boxes Air Filter $720.00 per box
6 Bottles fuel injector cleaner $200.00 per bottle
12 Boxes Spark Plug $300.00 per box
13 Boxes Brake Shoe $580.00 per box
9 Boxes Disc Pads $400.oo per box
To avoid duplication of account names and the use of improper account names, the company has provided the following list of accounts used to record its transactions as extracted from its chart of accounts:
Capital
Cash
Supplies
J Manufacturers
Service Revenue
Discount Allowed
Rent Expense
Wages Expense
Supplies Expense
Fixtures
Auto Care
Loan NBC
Discount Received
Electricity Expense
Drawings
Requirements:
Create a name for the owner of the company and give the business a name that reflects the operations of the organization.
Record the transactions stated above in the general journal.
Extract a
Prepare an Income Statement for the month ended August 31st, the owner’s equity statement and a Balance Sheet as at that date
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